07 February 2009
Is anybody tells me that follwing transaction will attract service tax, We as builders and developers make development agreement with power of attorney to develop particular land but in consideration for the same we have paid monetary amount and also make for seller one home of 12000 sq.ft (out of 40R) AS A CONSIDERATION AMOUNT IN KIND.
AS PER MY KNOWLEDGE SERVICE TAX WILL ATTRACT AS IT IS NOTHING BUT CONTRACT TO BUILD HOUSE. BUT MAJOR QUESTION IS THAT WHETHER SUCH CONSIDERATION IN KIND ALLOWED AND SERVICE TAX NOT APPLICABLE ON THE SAME.
10 February 2009
Get your contract examined in detail to avoid any liability in futures. It is advisable to take services of professional service tax consultant at the time of drafting of contract only, as a word here and there can make all the difference.
CAclubindia
